Beware! A recession could be on the way
How you can make ends meet if the economy takes a turn for the worst
LANSING, Mich. (WILX) - Prices are going up on almost everything, but that doesn’t mean that wages are climbing too. Experts believe we could be on the brink of a recession.
“Now would be a good time to look for work and also savings -- always having a cushion of saving if possible,” said Michigan State University Professor of Economics, Dr. Antonio Doblas-Madrid.
That’s because if a recession hits the country, the job market will weaken which makes recovery a lot harder. But Doblas-Madrid said the economy is already seeing areas of weakness that are causing concern.
“Stock market is falling, it has had a very bad start of the year, especially with technology stocks,” Doblas-Madrid said. “ And we also have that for the first time in 40 years, inflation is becoming a very big concern.”
And that’s a big concern because an increase in interest rates will cause an economic slowdown, which usually leads to higher unemployment rates.
“The economy slows down, firms are producing less, and they’re selling less, and therefore they are also hiring fewer workers,” said Doblas-Madrid.
Experts believe that inflation has already started eating into savings and spending accounts, and now companies are starting to cut jobs because of staffing issues -- which is one of the biggest impacts of a recession. Doblas-Madrid said that creating a monthly budget, cutting back where you can, and having more than one stream of income will help get you through a recession.
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